Life Property Fund breaks £2 billion

Standard Life Investments, one of the largest property fund managers in Europe, has announced that Standard Life’s Life Property Fund, which SLI manages, has broken through the £2 billion barrier in funds under management.

Invested primarily in direct property holdings in the UK, as well as other indirect property vehicles, the fund has outperformed its benchmark over one, three, five, 10, 15 and 20 years. Over the last three years it has returned 13.4% per annum on an annualised basis, while maintaining extremely low volatility levels of less than 2%.

Martin McGuire, Manager of the Life Property Fund, Standard Life Investments, said: “The fund’s growth can be put down to two main factors: very strong and consistent performance achieved against a backdrop of extremely low volatility. In many ways, this combination represents the ‘holy grail’ of investment practice and explains why the fund has been so well-supported by the IFA community in recent years.

“By refusing to compromise on the quality of the fund’s direct holdings, we have consistently outperformed our benchmark to the benefit of investors. This strategy is illustrated by the redevelopment of 10 Old Burlington4 in London’s West End. Bought in 2004 the property has been completely refurbished and last month was commanding record UK rental levels of £109 per square foot per annum. The profit on cost since acquisition has been in the region of 110%. This is only one example of how the fund has been able to serve investors so well over such a long period.”